Activision Blizzard / Microsoft: is the American regulator playing a double game?

Game News Activision Blizzard / Microsoft: is the American regulator playing a double game?

A strong decision to set the course

It’s a fact, the announced union of one of the biggest video game publishers with one of the richest companies in the world is making waves.. More than a year after the announcement made by Phil Spencer of his wish to acquire Activision Blizzard King for 69 billion dollars, doubts as to the finalization of this acquisition are still present. The three main regulatory bodies are scrutinizing the deal to find out whether or not it is a threat to competition. At least, officially.

According to an article from Bloomberg relying on confidential sources, the FTC reportedly decided to block the acquisition on December 8, 2022”in part to get ahead of its European counterparts and dissuade them from accepting an agreement authorizing the transaction” can we read. Journalist Leah Nylen, who specializes in all subjects revolving around competition law, adds that the FTC would have filed its complaint challenging the merger “just hours after a call between US and European officials about their investigations”. During this interview, the European Commission would have indicated its intention “to enter into discussions with Microsoft regarding possible corrective measures”. Questioned by Bloomberg, Barry Nigro, antitrust chief of Fried Frank Harris Shriver & Jacobson LLP, believes that by this action, the FTC wanted “take the lead on the Europeans in an effort to shape the narrative“. In other words, the American regulator would have sought to take the lead in influencing – insidiously – the other agencies.. The rest, we know: in January 2023, the CMA decided to extend the deadline for its investigation until April 26, 2023, while according to Reuters, the European Commission is preparing to publish its complaints against the merger. It has until April 11 to issue its opinion.

Politics comes to the party

These Bloomberg revelations come at a time when Microsoft subpoenaed Sony as part of the lawsuit wanted by the FTC and where Jim Ryan reportedly recently encounter European Commissioner for Competition, Margrethe Vestager, to once again discuss her concerns about the union. As a general rule, prohibition decisions are rare since more than 95% of operations are authorized by the European regulator. Nevertheless, this historic takeover could be one of the exceptions.

Officially, the fears of the FTC are multiple about the merger between Microsoft and Activision. The regulatory body fears that the American giant will prevent the release of Activision Blizzard games on other consoles, as it has done with Bethesda apps. She also believes that the Game Pass and the Cloud become too powerful if the deal is made, and that the Redmond firm voluntarily downgrades Activision games on other consoles. Unofficially, analysts say the FTC is using the Activision/Microsoft case not to serve fair competition, but to fuel its own war against big tech companies.. In a post published on the wall street journaljournalist Holman W. Jenkins, Jr. writes: “Microsoft is a big technology company. Ms Khan has been appointed to implement a crackdown on big tech companies”. “His daily job is to provide the president (…) with an anti-big-tech pitch” he adds, before continuing: “the FTC has made a habit of lying to get a case. She lies about the games business, she lies about Microsoft incentives. (…) Meanwhile, Sony, the undisputed market leader, keeps important games exclusive to its PlayStation and has not yet been sued by the FTC”. An opinion defended by the analyst specialized in the technological sector Ben Thompson who noted in a long article that the effort of the regulator “to invent a crime is worrying“.

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